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Why choose auto finance?

Eases Your Mind

With a car title loan you can get the cash needed to alleviate the stress that comes with an emergency. 

Brings Calmness

Knowing how easily you can purchase a car with assistance will bring you calm.

COMMUNITY

Auto title loan services are available throughout your community!

HOW CAR TITLE LOANS WORK

Car title loans are costly, although they offer the opportunity of getting quick and easy approval for a short-term loan. In order to get a car title loan, you need to use your car as collateral by handing over your title to the lender until you pay off the loan. This is to enable your lender to assume ownership of your car while you are paying off the loan, it will also enable them have a form of control should the borrower defaults or fails to pay.

Always consider car title loan only when it is the option you have got to sort your emergency needs as they are expensive and you risk losing your car to your lender in cases where you default.

In order to go for a car title loan, you must have equity in your car, and the title of the car must be in your name. Usually, you need to have paid off any debt that you are owing on the car but some lenders can still allow you to borrow if you are still paying off a standard car purchase loan. You can get between $100 to $5,500 when you apply for a car title loan.

When you apply for a car title loan, you use your title as collateral, the title is in custody of your lender during the period you are paying off your loan. As soon as you fully pay off the loan, your title is returned to you. Some lenders will also install a GPS tracking device on your car so that you can’t hide your car when you default payment.

With the title of your car in custody of your lender, it means your lender assumes ownership of your car and they can repossess your car if you default or fail to keep to the terms of the contract.

The amount you can get when you apply for a car title loan is dependent on the value of your car. You can get as much loan amount as the value of your car. Most lenders offer loan amount between 25% to 50% of the current market worth of your car.

Repaying the Loan

Car title loans are a type of secured and short-term loans, that is usually due within 15 to 30 days. What this means is that you have to come up with the funds to make repayment as fast as possible, this is known as balloon payment, and that might not come easy some times. In cases where you can’t meet up with the repayment, then you will have to request to roll over.

Rolling Over

This involves getting a brand new 30-day loan in place of paying off the loan. Rolling over makes the loan more expensive because you have to pay new low fees every time you roll over.

Above all, car title loan is a way to get emergency cash loans to sort emergency financial needs. If other options fail, it usually emerges as an easier option because of the ease with which it can be gotten. 

How To Buy A Car Without A Lien On It

Trying to buy a car that has a lien on it can be complicated because with the lien you might not be able to do the following;

  • Obtain a loan for the purchase of the car
  • Insure or register the car
  • Transfer the title in your name.

What a lien does is that it gives the lien holder the legal right to possess the car as long as the debt owed on it is not fully paid off. Having a lien placed on a car means that there is still an outstanding loan on the car. Hence, a new lender will not be able to place their own lien on the car and the car cannot be used as collateral to obtain a new loan from another lender.

If you buy a car out rightly with a lien on it, the car can be repossessed from you by the lien holder without any fault on your part. But it will be possessed based on the fact that the seller who you bought the car from has not fulfilled or paid off the outstanding loan on the car you bought out rightly.

As a result of this, you have to do your due diligence to ensure that before you buy or pay for a car, make sure that there are no existing any lien on the car and if there is any, ensure that the lien on the car is fully discharged.

How to Find Out if There is a Lien on a Car

Here are some vital things you need to watch out for to know if there is a lien on a car before you purchase the car;

  • Check the Car’s Present Certificate of Title: if there is a lien against a car, it will be listed on the title, showing that there is a third party interest in the car. Request the seller to let you see the title of the car. Do not accept photocopy, request for the original copy of the title as you cannot base your decision on photocopy as it can be doctored by the seller. If there is no lien on the car, then employ another means to further check.
  • Check for a Lien with Your Lender: If you applying for a loan to purchase a car, call your loans officer using the VIN number of your potential purchase. This will enable them to check for any lien against the car. They may charge you certain fee for this but it is worth it.
  • Carry out an Online Vehicle History Report, or VHR: You can do this online using the VIN number on certain website such as MotoSnoop, Carfax, and CarProof. Some of these services are free while some are paid.

Carry out a Lien Search in the state the car is titled in: You can do this with the DMV in the state in which the car is titled in by going online to the state’s DMV and search for any lien on the car. A free online resource that can help you do this is the Wisconsin’s DMV Lien Holder Search. Enter details such as verification and the VIN number to get the results of the lien search.

How can I get a title loan without a clear title?

An auto title loan is a type of secured loan where the borrower uses the title of their car as collateral to secure a car title loan in Jackson, MS amount that is paid back over an agreed period of time. This is not to say that the borrower cannot pay off the loan before the agreed time stated in the loan term. However, the borrower must find out from the lender if there are charges or penalties for paying off the loan as early as possible. Some lender charge prepayment penalties while some do not charge any penalty for prepayment.

What is Prepayment Penalty?

A prepayment penalty is any charges or penalty attracted by the borrower from the lender for paying off the loan before the time stated in the loan term. Hence, it is important to find out from your lender if there any prepayment penalty if you decide to pay off the loan as early as you can. Paying off your loan as fast you can work greatly in the favor of the borrower as they will be able to negotiate better deals when next he or she applies for a loan.

Applying Without a Clear Title

Title loan providers who allow consumers to apply for a car title loan are those who offer what is called a second lien title loan, which allows the borrower to apply for a car title loan without a clear title, that is a lien free title. 

Having a clear title means that you are the real owner of the car without any questions regarding the ownership of the car and there are no outstanding debts or loans being owed on the car.

How to Apply for a car title Loan without a Clear Title

Applying for a car title loan without a clear title is not different from the way you apply for other types of loans except that in this case, you have to provide proof of your first lien instead of a clear title. You can apply for this type of loan online just the way you apply for other types of loans. Fill the online application form and submit and a loan representative will get in touch with you to provide you with other necessary steps you need to take before the approved loan amount will be credited into your account. Remember, if you're thinking of budgeting on a low income, analyze your finances fully!

To Apply for a car title loan without a clear title, you need the following;

  • Your vehicle has to be in good driving condition
  • Proof of vehicle inspection
  • Proof of first lien or clear title
  • Proof of residence
  • Valid government – recognized ID

When you secure this type of loan, you pay back over time as it is stated in your loan terms and agreement. You can get to also drive your car around during the period you are servicing the loan but some lenders may install a GPS tracking device on the car so that they can have some level of control should the borrower default.

This is also a wonderful alternative to get quick and emergency cash loans when you are in dire financial emergency. Read more from https://loans.usnews.com/alternatvies-to-costly-payday-loans/.

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